The Chancellor is being surprisingly quiet in the lead up to the Budget announcement. whereas normally many of the key points have been mooted in public before Budget day, this year Osborne has only given us tantalising hints of what he’s thinking. We’re just hoping that he demonstrates the coalition’s support for Britain’s entrepreneurs in what he says.
Here’s our top 5 things we’d like to see:
1. Support for those businesses based outside of London
With all the talk about an economic divide between London and the rest of the UK, many are hoping the government will do more to support smaller businesses outside of the capital.
A move in this direction could not only help them to break into a competitive market, but also increase the number of jobs and innovative thinking in the wider economy.
2. Reform of the energy market
Every industry is facing the continuing challenge that is rising energy prices. For many businesses they are becoming increasing prohibitative to growth. It is not only the gas and electricity costs affecting manufacturers, but also diesel and petrol prices.
Some kind of targetted cut on fuel duty would be particularly welcome, and the government would find that resultant increases in productivity could well increase tax revenues.
3. Support for Exporters
Much has been made of the government’s targets to double exports by 2020, yet recently we have been seeing drops in the levels of the UK’s exports. some support from the coalition could really help to turn this around.
Even such measure as improving the administrative burden of exporting could have a highly beneficial effect.
4. Entrepreneurs’ Relief
This relief is really valuable to business owners, giving them a reduced rate of capital gains tax (at 10%), up to a value of £10 million when they sell.
It’s certainly hoped that this will be retained, but if the Chancellor chooses to extend it, that would be particularly welcome.
5. Supporting Innovators
Our economic growth is driven by innovators and their businesses. They not only provide jobs and growth in their local area, but are vital in helping the UK to compete on the world stage.
In the UK, support for innovators is already strong through research and Development tax credits, as well as Patent Box tax relief. It is widely hoped that Osborne won’t make any moves to dampen down their effectivness.